Plymouth County Explores Energy Aggregation Program to Lower Electricity Costs
County officials investigate potential program that could serve up to 270,000 customers across 27 communities
PLYMOUTH COUNTY - March 27 - Plymouth County officials are investigating an energy aggregation program that could potentially serve 250,000 to 270,000 electric customers across the county's 27 communities. The initiative aims to make energy bills more affordable for residents by leveraging collective purchasing power.
County Administrator Frank Basler presented findings from his research on energy aggregation during a recent meeting of the Plymouth County Commissioners.
"The Chair of the Plymouth Board of Selectmen came to us as an Advisory Member and Executive Board Member and asked us if there was something that the county could do to assist the towns and the inhabitants of Plymouth County on making their energy bills a little more palatable," Basler explains.
Currently, 21 of the county's 27 communities already have their own aggregation programs, while three municipalities operate their own power and light companies, making them ineligible for the proposed county-wide program.
The remaining three communities without plans could potentially benefit from joining a county-wide initiative. However, Basler notes significant price variations exist among current plans.
"We're at 12.195 cents [per kilowatt hour] and the high in the county right now is listed at 17.723 cents per kilowatt hour," Basler says, highlighting the disparity in current energy costs across communities.
The county is working with Colonial Power Group, a consultant that also works with the town of Plymouth. The consultant believes an aggregation program makes sense for the county, though several challenges exist.
One major hurdle is getting all communities to act as one unit. "The 27 communities would have to give up autonomy and act as one unit, similar to the Cape Cod Light Compact that takes care of all of Barnstable County, Dukes County and 21 communities on the Cape," Basler says.
The Cape Cod Light Compact serves approximately 205,000 electric customers, while Plymouth County's program would serve 250,000 to 270,000 customers, making it potentially the largest of its kind.
"There is no precedent for a program as large as ours," Basler notes.
The size of the program presents both opportunities and challenges. While larger buying power might seem advantageous, Basler cautions that bigger isn't always better in energy procurement.
"More customers does not always equate to lower rates," he explains. "Because I had mentioned that only one or two large retailers could bid for us, they wouldn't be bidding against a host of others. They don't tend to sharpen their pencils, and the biggest of the towns don't end up getting the best of the pricing."
The county is looking to Boston's approach as a potential model. Boston is currently developing a unique Request for Proposal (RFP) process where they bypass energy retailers and go directly to wholesalers.
"Boston is working on an RFP where they are going directly to the wholesalers who supply the retailers who would supply the municipalities. So they're in essence cutting out the middleman," Basler explains.
Boston's RFP process is expected to yield pricing results by mid to late May, which will help Plymouth County officials determine if their own program is financially viable.
Another challenge involves synchronizing all participating communities' contract timelines, as current energy contracts range from six months to over three years in duration.
Commissioner Jared Valanzola suggested exploring whether dividing communities into smaller groups might yield better results.
"I wonder if it makes sense, given your point about the size, to figure out what that sweet spot number would be by bunching towns together," Valanzola says. "What's the highest amount of customers we can reach where we stay under the threshold that we're not crossing into that threshold of there only being one or two companies that can do it?"
Basler agreed this approach merits consideration, noting, "The key is the amount of savings that can be delivered."
For next steps, the county will continue working with Colonial Power Group to analyze the potential footprint of a Plymouth County aggregation program and evaluate the results of Boston's wholesale model when available.
Officials will also consult with regional planning agencies that have experience with aggregation programs and continue gathering information on the procurement process from the Department of Public Utilities.
If the program moves forward, Basler estimates a potential launch in 2027 or 2028, given the significant coordination required.
"Once we do find out that there's interest, then we'll start asking and I'll work with the town procurement officers and the energy procurement teams to try to align steps along the way," Basler says.
Other business discussed at the meeting:
* Commissioners approved pricing for 2022 vehicle additions from Colonial Ford Inc. for the county's municipal vehicle bid program.
* The Commission discussed fiscal year 2026 budget department guidelines and process, with department heads required to submit budget requests by the following Wednesday.
* Commissioners authorized the Treasurer to enter into an agreement with the Register of Deeds, subject to review by the chair.
* The treasurer reported on the county's investment portfolio performance, noting a positive return of 0.15% despite challenging market conditions in February.
* The board discussed upcoming leadership and legislative dinners scheduled for April 8.
* Commissioner Greg Hanley provided an update on the upcoming Climate Alliance conference scheduled for May 21-22, which will include an Irish delegation and presentations on sustainable energy practices.